With the blow of the 2008 recession, western designer brands with their rich heritage, have begun to search for their fortune, selling handbags and handmade suits to the affluent Chinese people. The fashion biggies have also begun to solicit local distributors, banks, private groups who are interested in the old brands, to expand in Asian markets as they witnessed global sales go down by 8% in 2009.
YGM Trading, an Asian licensee of Aquascutum of British brand, had agreed with some brands that were experiencing financial trouble in the past. YGM Trading purchased Guy Laroche in 2004 and CEO Shirley Chan said that the process of expanding and adding brands to the portfolio still would be going on.
Cavalli, the fashion house from Italy maybe big in the consumers point of view, but is not big enough to make any deals or to buy the brand. Louis Vuitton or Chanel have little chance of being the serious targets. To lessen the exposure risks, some less known brands of western countries would like to sell as there is a lot of opportunity in fast developing Asia.
The iconic unsuccessful brands have undergone rejuvenating, resurrecting and rebranding in a big way in the Chinese market. Western brands, such as Polo Ralph, Longchamp, Burberry, and Lauren are brought back repacked to the stores in the market to quench the hunger pangs of luxury in China. As the market is booming, the locals want the big names in fashion to set up stores in the big cities of China.